The firm recommends selling conventional 30-year 6.0% passthroughs and buying duration-weighted 15-year 5.5% passthroughs. Recent technical strength in the 6.0% roll has made the coupon rich versus 15-year 5.5%. The firm believes that the strength in 6.0% will be difficult to sustain in the face of recent fast prepayment speeds on that coupon. In particular, the firm believes that in an uptrade, the 6.0 coupon may repeat its poor performance of early March. For investors who don't roll, 15-yr 5.5% have better current yield, shorter duration and arguably better convexity.
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There are two series, 2024-1 and 2024-2, that have revolving periods—three for the 2024-1 and five for the 2024-2—during which noteholders will not receive any principal.
31m ago -
The trust employs a 24-month revolving period. There is an increased risk that collateral quality could deteriorate as the transaction evolves with new collateral.
March 27 - Yahoo Finance Feed
The banking giant has launched an online platform that links small-business owners and entrepreneurs in need of capital to community development financial institutions. The platform was developed in partnership with Community Reinvestment Fund USA.
March 27 -
Audited financials, proof of fidelity bonds and errors and omissions insurance must be provided on Ginnie Mae Central after May 13.
March 27 -
Aside from the cash flow stabilization, another credit positive to the deal, TAH Operations is property manager to the portfolio, and has strong processes and controls.
March 27 -
Four tranches of class A notes make up the capital structure, and they all benefit from 3.00% in total initial hard credit enhancement.
March 26